Etihad to Trial Autonomous Cargo Aircraft with Hili Hybrid VTOL

(UNITED ARAB EMIRATES) Etihad Cargo has begun pilot trials of autonomous cargo aircraft in the United Arab Emirates, partnering with Abu Dhabi-based LODD Autonomous to test a next-generation hybrid vertical take-off and landing drone designed for freight. The collaboration centers on the ‘Hili’ hybrid VTOL UAV, a cargo drone with a payload capacity of 250 kilograms and a range of more than 700 kilometers that does not require a runway or traditional airport infrastructure. Experimental operations started in November 2025, with test routes planned for point-to-point transfers across the country to move high-value, time-sensitive goods more quickly.

The trials mark a move by the cargo and logistics arm of Etihad Airways to add short-range, agile capacity alongside its conventional fleet, with the aim of cutting delivery times by hours or even days for shipments that need rapid handling. Etihad Cargo and LODD Autonomous say the early focus is the “middle-mile,” the often-overlooked stretch between logistics hubs and warehouses that can create bottlenecks for pharmaceuticals, industrial components, and other critical goods. The companies are evaluating efficiency, safety, and ground logistics compatibility, and assessing whether autonomous VTOL aircraft can be integrated into Etihad Cargo’s operations at scale.

“As a fellow Abu Dhabi-based company, LODD Services shares Etihad Cargo’s ambition to transform the future of air mobility. We’re continuously looking for new ways to enhance connectivity within the UAE, empowering both the people and businesses behind every shipment. Together with LODD Autonomous, we hope to open up new possibilities for air cargo, creating smarter, faster, and more sustainable ways to move goods across the country,” said Stanislas Brun, Chief Cargo Officer, Etihad Airways.

The statement underscores Etihad Cargo’s push to build operational resilience while exploring new tools to meet on-demand delivery expectations in the region.

LODD Autonomous, which developed the ‘Hili’ platform, positions the aircraft as a direct answer to gaps in traditional logistics networks.

“We designed the ‘Hili’ Hybrid VTOL UAV to address the gaps in traditional logistics, particularly in the middle-mile sector. By creating direct air corridors between logistic hubs and warehouses, it enables seamless and rapid transfers. This is especially important for high-value, time-sensitive shipments such as pharmaceuticals and industrial components, where even minor delays can disrupt operations and lead to substantial financial losses,” said Rashid Al Manai, Chief Executive Officer, LODD Autonomous.

The emphasis on direct air corridors points to the project’s core promise: shorten the distance and time between where goods land and where they are needed, especially across an economy that relies on integrated supply chains to serve healthcare, energy, manufacturing, and e-commerce.

The technical profile of the Hili VTOL UAV is central to that promise. With a stated payload of 250 kilograms, the aircraft slots into a niche where traditional courier vans or scheduled feeder flights can struggle to meet timing or access constraints. The more than 700-kilometer range suggests coverage from Abu Dhabi to every emirate and beyond, while the ability to operate without a runway opens up industrial parks, distribution centers, and remote facilities that lack aviation infrastructure. The partners say the testing program will measure how the drone performs in real-world logistics scenarios, including loading and unloading processes, turn-around times on the ground, and communications with dispatch systems that coordinate Etihad Cargo’s network.

Operationally, Etihad Cargo is examining how to blend crewed flights and autonomous sorties so that the VTOL UAV can complement scheduled services. That could mean dispatching a Hili aircraft on same-day middle-mile transfers to connect an arriving widebody freighter’s pharmaceutical pallets directly to a distribution hub, rather than waiting for road transport windows or secondary airport availability. For industrial components, the model aims to move critical parts quickly from a warehouse to a factory or an offshore support base, where delays can idle production lines or service crews. By trimming hours at this stage, the companies argue they can reduce spoilage risk for temperature-sensitive goods and lower the need for buffer stock.

The collaboration is also pitched as part of a sustainability roadmap. Etihad Cargo says the initiative aligns with the UAE’s broader vision to advance autonomous and green transport technologies, with potential to cut emissions by avoiding less efficient road trips and better matching aircraft size to shipment needs. While detailed emissions data has not been released for the Hili platform, the middle-mile use case targets routes where light cargo is moved in heavier assets or idles in traffic, a pattern that can inflate carbon footprints. If the VTOL UAV reduces empty miles and smooths hub-to-hub flows, it could help the carrier reach environmental targets tied to its freight operations.

The pilot trials are designed to test safety and regulatory compatibility as much as speed. Operating an unmanned cargo aircraft across populated and industrial areas in the UAE requires adherence to national aviation regulations governing airspace, pilot oversight, and contingency procedures. Companies typically coordinate with the UAE’s aviation authorities on flight permissions, altitude caps, and routing to ensure safe separation from crewed aircraft. Guidance such as the UAE General Civil Aviation Authority’s unmanned aircraft rules serves as the framework that trials like these must satisfy before any broader deployment.

A key technical advantage for Etihad Cargo and LODD Autonomous is the Hili aircraft’s launch-and-land flexibility. Traditional short-haul cargo moves often hinge on airport slots, runway lengths, and ground handling contracts. By removing the runway requirement, the VTOL UAV can, in principle, hop between a logistics hub in Abu Dhabi and a warehouse cluster in Dubai or Sharjah, using designated landing pads and a lean support team. The companies are studying how far this flexibility can go before meeting constraints like zoning, noise profiles, or local flight permissions, and how to design ground handling procedures to ensure the drone’s quick turnarounds do not introduce new delays.

The test program will also probe reliability thresholds. For time-sensitive sectors like pharmaceuticals, precision counts: delays of even a few hours can compromise temperature-controlled shipments. A 250-kilogram payload allows for a meaningful volume of packaged medicines or specialty parts, yet it forces tight planning to ensure loads fit both weight and volume limits. The companies are expected to monitor how consistently the VTOL UAV meets planned timelines, how it behaves under varying weather conditions, and what redundancy measures are needed to maintain service-level agreements. Data from these operations will inform whether Etihad Cargo can add autonomous sorties as a standard product offering.

Commercial feasibility is the other variable. While the partners are not disclosing costs, the calculus for middle-mile moves weighs aircraft acquisition or leasing, maintenance, batteries or fuel, ground crew, and command-and-control systems against road transport and conventional air feeder options. If the Hili VTOL UAV can serve multiple rotations a day with minimal ground time and reduced staffing, the economics could tilt in favor of autonomous flights on certain lanes. Etihad Cargo is testing that proposition with a view to integrating scheduling, tracking, and customer interfaces, so freight forwarders and shippers can book and monitor drone flights as easily as they do standard air waybills.

For Abu Dhabi, the collaboration supports its positioning as a hub for next-generation transport technologies, with the emirate’s ecosystem of aviation services, free zones, and logistics parks serving as a testbed. The companies say the trial could set new standards for autonomous air freight in the Middle East, especially if results demonstrate safe, repeatable, and commercially viable middle-mile operations. Industry observers will watch whether regulatory processes adapt to autonomous cargo corridors and whether standardized landing sites and charging or refueling points emerge near major logistics clusters.

Etihad Cargo’s decision to move from concept to experimental operations in November 2025 is a notable milestone for the region’s cargo market, which has seen incremental trials of drones for last-mile deliveries but fewer efforts to bridge airport-to-hub or hub-to-hub gaps with heavier loads. By focusing on a VTOL UAV that carries 250 kilograms over more than 700 kilometers, the companies are staking out a middle tier—larger than small courier drones but smaller than crewed feeder planes—that could change how short-range freight moves if the technology scales.

The company’s messaging emphasizes practical applications ahead of broader rollouts. The trials will assess how the Hili platform integrates with Etihad Cargo’s network, from dispatch planning to ground handling and customer tracking. Any future deployment will depend on demonstrating safety, reliability, and cost-effectiveness while fitting within national aviation rules. The partnership suggests that, if results meet expectations, autonomous VTOL aircraft could become a regular feature of middle-mile logistics in the UAE, moving pharma cartons, spare parts, and other urgent shipments between logistics nodes on tight timetables.

For now, the focus is on data: cycle times from load to lift, route performance across the UAE’s geography, ground coordination at warehouses and hubs, and how quickly the system can scale from one aircraft to a fleet. Etihad Cargo and LODD Autonomous are betting that shaving hours from the transit of high-value goods will resonate with shippers who count delayed inventory in lost revenue. If the trials validate the model, a path opens to replicate it across similar corridors, first within the Emirates and potentially along short regional hops where a runway-independent VTOL UAV can extend the reach of established cargo networks.

The companies’ comments frame the initiative as both a logistics upgrade and a sustainability play, in line with national priorities on innovation and emissions reduction. Whether the Hili VTOL UAV becomes a standard tool in Etihad Cargo’s kit will hinge on the outcomes of these trials, but the intent is clear: use autonomous aircraft to make middle-mile freight smarter, faster, and more resilient, starting with targeted routes in the UAE and building from there.